A week ago Asiana was a cash cow for Kumho Group, widely regarded as too big to fail, and now it is up for sale. It would not look good for the Korean government if Asiana fails to meet its debt obligations; the Moon administration already propped up Kumho Group back in 2017, can they really afford to let everything collapse now?
Originally Posted by Korea Herald
Kumho Asiana Group puts Asiana Airlines up for sale to stay afloat
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"(The group) has been trying to come up with the best way to normalize Asiana Airlines," the official said, speaking on condition of anonymity.
"It decided that selling Asiana Airlines will be the way for both the group and the airlines to regain market confidence."
The group earlier proposed selling the airline company under its self-rescue plan to be submitted to its creditors but only after three years and if it fails to turn the company around.
However, its nine creditors, led by the state-run Korea Development Bank (KDB), are said to have dismissed the proposal as insufficient to regain market trust.
The airline swung to a net loss in 2018 from a 248 billion-won ($218 million) net profit the year earlier.
The KDB, meanwhile, said in a press release that Kumho Asiana has submitted its self-rescue plan that includes the proposed sale of Asiana Airlines. (Yonhap)